SEC Will Not Appeal Hedge Fund Ruling
By Investment Management Practice Group
On August 7, 2006, SEC Chairman Christopher Cox announced that the SEC will not appeal the D.C. Circuit Court of Appeals’ decision in Goldstein v. SEC, the decision which invalidated the SEC’s hedge fund adviser registration rules. Chairman Cox stated that, since the appellate court’s decision was based on multiple grounds and was unanimous, “further appeal would be futile and would simply delay and distract from the goal of advancing investor protection.” Instead, Chairman Cox confirmed that the SEC will move aggressively on an agenda of rulemaking and staff guidance to address the legal consequences from the invalidation of the rules.